Hurricane Helene
Late Thursday night and early Friday morning, Hurricane Helene hit Florida's Big Bend region hard. The Category 4 storm hit land with winds of 140 miles per hour and record-breaking storm waves.
When people in Florida woke up Friday to look at the damage from the storm, more than a million were still without power. Helene was finally called a tropical storm Friday morning. During the day, it was moving north into Georgia and the Carolinas.
Florida's Insurance Market
People who live in Hurricane Helene's path are not the only ones who are in danger. The storm could also hurt Florida's insurance market, depending on how much harm it does. The Florida insurance market was badly damaged and was on the verge of collapsing. It is still a hot topic for people in the state.
Small insurers now make up most of Florida's insurance market. These companies often don't have as much cash on hand as big national carriers, which makes them more likely to go out of business if they get too many claims.
The researchers worried about a certain situation: Florida gets hit by a big storm, which leads to a huge number of insurance claims. Insurance companies that seemed safe on paper start going out of business, which means homeowners can't get their claims paid. That makes it more likely for people to not pay their mortgages because they can't afford to fix up their houses.
Will people in Florida be able to fix up their homes following Hurricane Helene now that they have fewer insurance options and higher premiums? What choices do they have right now?
Private Insurance Companies Not Tied to State Regulations
There are private insurers that offer home insurance plans that are not regulated by the state. These companies are not state-backed insurers. In return for lower premiums, they often offer customized coverage that might not cover certain high-risk things, like damage from wind or flood. When homeowners choose this option, they generally need to get extra insurance policies for certain risks, like flood insurance.
The Citizens Property Insurance Company
In Florida, Citizens Property Insurance Corporation is the insurer of the last option, even though it is a government-backed company and not really an alternative in the usual sense. It is made for people who can't find private insurance that fits their budget. It might not have the cheapest premiums, but it gives Floridians in high-risk places who have no other choice a good one.
Conclusion
Even though there are options besides regular home insurance, each one has its own risks and restrictions. In Florida, where natural disasters happen often, it's important to think carefully about these choices and see if the possible cost savings are greater than the risks. To make sure they are fully protected, homeowners should also think about adding separate flood or windstorm insurance to these options.